The role of offsets in a post-Kyoto climate agreement: The power sector in China
This paper considers how an offset scheme specific to the electricity generation sector could incentivize emissions cuts while avoiding the problems encountered by the Clean Development Mechanism (CDM). It proposes an approach to project evaluation based on measures of additionality, economic viability and contribution to sustainable development specific to this sector and re-evaluates 460 registered CDM projects in China that generate electricity using wind, natural gas or small hydro. It concludes that many small hydro schemes would be viable without the CDM subsidy. Although these projects have zero emissions from operations, offsets issued to projects that are viable without subsidy permit increased emissions in developed countries and lead to a net increase in global emissions. To provide some indication of the sustainable development benefits that CDM projects bring to their host countries, the paper includes estimates of the projects' benefit to public health due to the reduced use of coal for generation. The paper provides insights into the economics of projects and their value to host countries that are missed by the official CDM methodologies. It contributes to the debate over the design of sector-specific offset schemes that may be part of a new global agreement on combating climate change.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sathaye, Jayant & Phadke, Amol, 2006. "Cost of electric power sector carbon mitigation in India: international implications," Energy Policy, Elsevier, vol. 34(13), pages 1619-1629, September.
- Resnier, Martin & Wang, Can & Du, Pengfei & Chen, Jining, 2007. "The promotion of sustainable development in China through the optimization of a tax/subsidy plan among HFC and power generation CDM projects," Energy Policy, Elsevier, vol. 35(9), pages 4529-4544, September.
- Zhang, Daisheng & Aunan, Kristin & Martin Seip, Hans & Larssen, Steinar & Liu, Jianhui & Zhang, Dingsheng, 2010. "The assessment of health damage caused by air pollution and its implication for policy making in Taiyuan, Shanxi, China," Energy Policy, Elsevier, vol. 38(1), pages 491-502, January.
- You, C.F. & Xu, X.C., 2010. "Coal combustion and its pollution control in China," Energy, Elsevier, vol. 35(11), pages 4467-4472.
- Don Kenkel, 2006. "WTP- and QALY-Based Approaches to Valuing Health for Policy: Common Ground and Disputed Territory," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(3), pages 419-437, July.
- Fischer, Carolyn, 2005.
"Project-based mechanisms for emissions reductions: balancing trade-offs with baselines,"
Elsevier, vol. 33(14), pages 1807-1823, September.
- Fischer, Carolyn, 2004. "Project-Based Mechanisms for Emissions Reductions: Balancing Trade-offs with Baselines," Discussion Papers dp-04-32, Resources For the Future.
- James Hammitt & Ying Zhou, 2006. "The Economic Value of Air-Pollution-Related Health Risks in China: A Contingent Valuation Study," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 33(3), pages 399-423, 03.
- Liu, Jin-Tan & Hammitt, James K. & Liu, Jin-Long, 1997. "Estimated hedonic wage function and value of life in a developing country," Economics Letters, Elsevier, vol. 57(3), pages 353-358, December.
- Michaelowa, Axel & Jotzo, Frank, 2005. "Transaction costs, institutional rigidities and the size of the clean development mechanism," Energy Policy, Elsevier, vol. 33(4), pages 511-523, March.
- Rowe, Robert D. & Lang, Carolyn M. & Chestnut, Lauraine G., 1996. "Critical factors in computing externalities for electricity resources," Resource and Energy Economics, Elsevier, vol. 18(4), pages 363-394, December.
- Nussbaumer, Patrick, 2009. "On the contribution of labelled Certified Emission Reductions to sustainable development: A multi-criteria evaluation of CDM projects," Energy Policy, Elsevier, vol. 37(1), pages 91-101, January.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:4457-4466. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.